Source · Select Committees · Environment, Food and Rural Affairs Committee
Recommendation 9
9
To ensure that the Special Administration Regime is a credible threat, the grounds on which...
Conclusion
To ensure that the Special Administration Regime is a credible threat, the grounds on which it can be applied need to be clearer, particularly on performance grounds. There should not be automatic “triggers” for a SAR, outside of insolvency, as it should remain a matter of last resort that will require some judgement. However, government and regulators should feel empowered to take timely action with the SAR when companies repeatedly fail to meet basic standards and fail to improve outcomes after an attempted turnaround oversight process. (Recommendation, Paragraph 40)